A Modest Proposal: "How to Fix Capitalism"

"How to Fix Capitalism" is an insanely ambitious post that ranges over, well, just about everything concerned with business and all it touches. The following proposals give some hint of its deep wisdom:

# Abolish patents. They have not been proven to speed progress: the evidence seems to be to the contrary. They definitely increase costs, are an inefficient way of funding R & D and allow oligopolists to block competition.

# Reduce the copyright term to the optimal length suggested by research of about 15 years. It ought to be obvious that works produced in the reign of Queen Victoria should not be in copyright in the 21st century.

# Exclude works distributed with DRM from copyright to ensure that copyright works do fall into the public domain when the copyright expires.

# Reduce the copyright term on computer software to two years, and make copyright contingent on disclosing source code (so others can alter the software when it comes out of copyright).

This section also warmed the cockles of my collaborative heart:

by telling people that they are expected to be selfish, they become more selfish. Economics students become more selfish because they are repeatedly taught to expect that people are rational and selfish: the association between the two can only strengthen the effect.

Society is permeated, especially in business, politics and economics, with the idea that is people pursue their own interests, this will automatically lead to the best outcome, and that, therefore, people should be selfish. This cannot be fixed by endless incentives to align interests: life and business is too complex for that to work. A free market is not a substitute for integrity.

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What's Wrong with this Picture?

Ignoring the parodistic language, that is:

Essentially, with the Internet, capitalism gifts the masses with a false commons where people can work, off the clock, creating information and relationships that the ruling class can enclose, appropriate, commodify, and sell back to us at a later date. It’s a way of letting the process of primitive accumulation work as a perpetual, and because of the stagnation of the economies in the advanced capitalist countries, vital, supplement to the mechanism of exploitation, and one that should be seen alongside the other forms of primitive accumulation that are occurring right now and are, for sure, much more important: the direct seizure of Iraqi resources, the copyrighting and commodifying of the material of our bodies, and most obviously, the accumulation by dispossession that is occurring in Africa, in China, in Latin America, as capitalism pushes to its limits and attempts to expunge from the earth any trace of commonly-held land.

What's wrong with it? Well, centrally, it looks at things purely in monetary terms: that everything has a price, and that everything has to be paid for. In many ways, the central insight of commons-based activities is that there are things of worth beyond money, things that capitalism really can't capture (luckily).

Or as Michel Bauwens puts it in his own reply in the same post:

The last thing we want and need to do is the be so mentally colonized by the logic of market exchange that all we can and want to ask is just for a bigger piece of the pie. The key question is: how can we both preserve the social achievements of participation and peer production, and make a living at the same time. Out of the answers to this question will come the new social forms.

Upgrading the Economic Operating System

How can you not love a book whose author introduces it thus:

My latest book, Capitalism 3.0, is out this week. It’s about how to upgrade our economic operating system so that it protects the planet, shares income more equitably, and makes us happier, while preserving the strengths of capitalism as we know it. The key to my proposed upgrade is to rebuild the commons, that dwindling set of natural and social assets that benefit everyone.

In the spirit of enlivening the cultural commons, the book’s publisher, Berrett-Koehler, has agreed to an experiment. They are selling the book in the usual places — in bookstores and on-line — but they’re also allowing readers to download the book from this web site for free.

I've not read it yet, but will do: I'm sure it'll be worthwhile. Until then, I suggest everyone spread the word to reward the author and his enlightened publishers, and to fulfil the former's hopes - and help with that upgrade:

As the author, here’s what I hope will happen. I hope many of you will download and skim the book. If you’re intrigued, you’ll read the preface and first chapter either on the screen, or by printing just those pages. You’ll then decide you want to read the whole book, give a copy to a friend, or keep it on your bookshelf or coffee table. So you’ll go to your local bookstore, or to an on-line vendor, and buy the handy, long-lasting version, printed on acid-free paper.